Although Texas does permit both judicial and non-judicial foreclosures, most are handled by the lenders out-of-court because it's cheaper and faster. Before any property gets near the Houston foreclosure listings, the borrower is notified he or she is required to pay off the default total of the loan. At least 20 days must be given for this deadline. After that passes, the foreclosure process can begin.

Twenty-one days before the home becomes available in public auction or Houston foreclosure listings the country clerk must be notified by the lender. No notices have to be published in the paper in Texas which can be bad for investors looking for affordable property and borrowers who ignore their mail but read the news.

At the auction, the winning bidder pays in cash the full amount on the same day. If the property happens to sell for more than what is owed, the surplus goes towards paying off any additional liens on the property. Unfortunately, for borrowers once the foreclosure process begins they have no rights to get back the property. The only possibility is to bid on the property or buy it from the Houston foreclosure listings. Using this information today can help you become a smarter investor in the properties in the Texas area.